Beginning Inventory, Direct Materials $12,500
Ending Inventory, Direct Materials $21,000
Direct Materials Used $195,000
Sales $485,000
Beginning Inventory, Work in process $62,000
Ending Inventory, Work in process $82,000
Cost of goods manufactured $415,000
Actual Manufacturing Overhead $165,000
Selling and Administrative Expenses $82,500
Beginning Inventory, Finished Goods $92,000
Ending Inventory, Finished Goods $83,000
Beginning balance, Property,
Plant and Equipment $255,000
Ending Balance, Property,
Plant and Equipment $262,000
Applied Manufacturing Overhead (80 percent of direct labor cost)
Required: Using the information given, compute the following
(1) Cost of direct materials purchased
(2) Cost of direct labor
(3) Applied manufacturing overhead
(4) Cost of goods sold before closing out manufacturing overhead account
(5) Net income (loss before closing out manufacturing overhead account. SOLUTION
